Hospital management company Universal Health Services (NYSE: UHS) will be reporting earnings this Monday after the bell. Here’s what to look for.
Universal Health Services missed analysts’ revenue expectations last quarter, reporting revenues of $4.49 billion, up 9.1% year on year. It was a satisfactory quarter for the company, with full-year revenue guidance beating analysts’ expectations but a slight miss of analysts’ revenue estimates.
Is Universal Health Services a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Universal Health Services’s revenue to grow 7% year on year, in line with the 6.7% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Universal Health Services has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Universal Health Services’s peers in the healthcare providers & services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. HCA Healthcare delivered year-on-year revenue growth of 4.3%, meeting analysts’ expectations, and Elevance Health reported revenues up 1.5%, topping estimates by 2.4%. Elevance Health traded up 5.5% following the results.
Read our full analysis of HCA Healthcare’s results here and Elevance Health’s results here.
There has been positive sentiment among investors in the healthcare providers & services segment, with share prices up 9.6% on average over the last month. Universal Health Services is down 5% during the same time and is heading into earnings with an average analyst price target of $247.35 (compared to the current share price of $174.90).
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